Value Investing News

Utility dividend stocks. When you hear those words what do you think of? Long considered the domain for "widows and orphans", utilities have developed a somewhat stodgy reputation. Why are utilities considered good for widows and orphans? Here a few reasons:

Not all stock in the S&P 500 Index pay dividends, but many of the best known dividend growth stocks are part of the index. This week week, I screened my dividend growth stocks database for stocks that are members of the S&P 500 and have a yield of 5% or more. The results are presented below:

You can’t spend earnings! At first glance, this seems like an odd statement, possibly even incorrect. However, it is not only correct, but an important axiom for all types of investors. Through fraud and manipulation financial statements can be made to look quite impressive, but the cash that arrives in your brokerage account is real.

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A look at the cheapest stocks in the S&P 500 based on price-to-book ratio and current ratio.

For a dividend investor, there is not much worse than a stock that cuts or eliminates its dividend. Suddenly, the reason you purchased the stock no longer exists. Many dividend investors, myself included, have a hard and fast rule to immediately sell any stock held as income investment if it cuts its dividend.